Netflix and its current financial problem (part 2)
Greetings Project Hope family, we continue to talk about the financial situation of the billion dollar Netflix company.
Netflix's business depends on content creators, many of Netflix's movies and series can be found on regular television, many times the agreement consists of privileged exhibition of content after a few days of release in theaters, so if users are left without their favorite content they usually migrate to another platform.
Netflix's problem is that it does not have the content that its competitors such as Disney+ and HBO GO have, there is no better place to watch content than Netflix, but the other services are taking Netflix's customers, however the market is saturated and streaming companies are stagnating, so the companies can no longer grow.
If almost half the planet is already subscribed you can't have new users , there is no source of new subscribers , this is bringing a decreasing return , Netflix is paying more money to keep their content and not lose subscribers but this is not bringing them new customers , which translates into monetary losses.
Disney+ has segmented content , it charges you separately for certain content , Netflix has taken the decision to charge for sharing accounts , both companies are looking for new ways to make money since they understood that they will not have new customers.
140 million users watched the squid game , this did not bring new subscribers , they only entered 70 thousand new subscribers in the United States during that time , so Netflix will have to make a change in their business strategy , as they did before when they went from being a DVD rental company to create the streaming service.
Netflix is about to include video games in its catalog , no one knows how they will do this , but they must find a way to make more money , because not only compete against Disney + is also amazon prime video and in total there are more than 100 streaming services , so the dominance of Netflix is in danger.
Thank you for reading
